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Manali profits slide in q1 2017

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Chennai, India – Polyols producer Manali saw its revenue fall by INR 800 m to INR 1.63 bn ($25 m) in in the first quarter of 2017 compared with INR 1.71 bn in in the same period in 2016.

Earnings before interest and tax fell from INR 157 m in the first quarter of 2016 to INR 31m in the 2017 quarter. The firm reduced the cost of inventories, stock in trade and work-in-progress from INR 100 m in the first quarter of 2016 to 34.5 m in the 2017 quarter.

However, this was offset by an increase of almost INR 80m in other expenses, small rises in excise duty on sales, and a 54% rise in energy costs from between quarters.

Manali added that the lease on its facility has expired and it is in negotiations with the local government of Tamil Nadu to renew it. Management said that it is confident that lease will be renewed.